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Chewy (CHWY) closed the most recent trading day at $34.43, moving -1.96% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.5% for the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 1.21%.
The the stock of online pet store has fallen by 10.57% in the past month, lagging the Retail-Wholesale sector's gain of 1.04% and the S&P 500's loss of 0.47%.
The investment community will be closely monitoring the performance of Chewy in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.20, marking a 11.11% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.2 billion, indicating a 13.11% increase compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Chewy boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Chewy is currently being traded at a Forward P/E ratio of 28.32. This valuation marks a premium compared to its industry's average Forward P/E of 23.
We can additionally observe that CHWY currently boasts a PEG ratio of 0.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.19.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.